AUD/USD: Sellers keep lurking near 50-day SMA despite recent recovery
- Buyers cheer positive news on the US-China trade front but still lack the strength to surpass 50-day SMA on a daily closing basis.
- Lack of data highlights the on-going trade talks for AUD/USD traders.
The AUD/USD pair is taking the bids around 0.7120 during early Thursday. The pair is recently on a positive side but is still left to clear 50-day simple moving average (SMA) on a closing basis that has been limiting the upside since late-March. The welcome news reports concerning the trade deal between the US and China is pleasing Aussie buyers as China is Australia’s largest customer. Lack of data-points may keep pushing investors to concentrate more on the trade talk to determine near-term trading bias.
Chinese lawmakers headed by the Vice Premier Liu He is on a Washington visit to further discuss the trade deal that’s in limbo since long. Initial news reports from the negotiations have been claiming that both the sides are closer to a deal.
While upbeat news for the US-China trade deal was already in play favoring AUD/USD rise, sluggish data from the US provided additional fuel to the quote’s increase. The US ADP employment change and ISM non-manufacturing PMI both remained beneath market consensus during their release on Wednesday.
Given the lack of data and on-going trade discussion between the US and China, Aussie traders may put a high emphasis on the trade news reports that may further extend the present upside.
Also, a likely increase in the US weekly initial jobless claims to 216K from 211K could add strength to the sentiment.
AUD/USD Technical Analysis
The quote needs a successful run-up beyond 50-day SMA level of 0.7120 in order to aim for 0.7150/55 resistance confluence comprising 100-day SMA and a downward sloping trend-line stretched since February 21. Should prices rally past-0.7155, 200-day SMA level near 0.7205 could gain market attention.
On the downside, 0.7050, 0.7000 and 0.6980 are likely crucial supports for sellers to watch during pullback.